UBS analyst Jay Sole upgraded Birkenstock to Buy from Neutral with a price target of $85, up from $52. The company is successfully executing its direct-to-consumer expansion strategy better than expected, the analyst tells investors in a research note. The firm sees Birkenstock “ramping rapidly” in Asia-Pacific and selling prices moving higher than previously thought, driven by a positive sales mix shift to direct-to-consumer and successful introductions of premium priced products in new categories. UBS increased its five-year annual earnings growth forecast to 25% from 21% and its new fiscal 2026 earnings estimate is now 10% above consensus. The firm thinks continued strong growth and upward earnings revisions will boost the stock’s valuation toward its price target. It sees a 3:1 upside/downside skew.